All Delray Beach contracts should go out to bid, officials say

Waste Management contract could have violated city's rules

May 15, 2013|By Maria Herrera, Sun Sentinel

In keeping up with campaign promises, several Delray Beach city officials are going after city contracts they say were awarded without proper bidding.

At Tuesday's workshop meeting, a majority of City Commissioners agreed to revisit two contracts that prompted controversies and discontent among residents: The Waste Management garabge hauling contract and the beach cabana rental contract.

In August, the Commission voted 3-2 to extend its $4 million-a-year garbage services contract with Waste Management, even after residents clamored for months for an open bid process and the Palm Beach County inspector general recommended it.

"This is a contract that left many in our city wondering if our city violated any ordinance or procurement procedures or codes," Commissioner Shelly Petrolia said of the Waste Management contract.

Petrolia cited several sections of the contract which caused her concern, including one where the contract was extended to eight years

"This is the polar opposite of good public policy practices," she said. "I cannot imagine that the commission at the time fully understood the potential consequences of this clause."

Petrolia asked her fellow commissioners to research whether the renewal violated the policies that the city uses in order to secure vendors such a trash haulers.

She said not putting the contract out to bid could be costing residents $12.5 million dollars in higher fees over a five-year period.

Mayor Cary Glickstein supported Petrolia in her request for outside legal advice. He also read city policy that outlines the city's requirement to put out to bid any contract over $15,000.

"It assures the city of the best of several competitive prices and products, it promotes competition for the city business and it negates criticism of preferential treatment toward favored vendors," Glickstein said. "I think we see all three of those in play here."

Commissioner Al Jacquet, who voted against renewing the contract without a bid in August, said he also supported the inquiry.

Commissioner Angeleta Gray said she did not support the inquiry and asked City Attorney Brian Shutt if he felt the city had violated its own procurement policy. Shutt answered no.

In 2012, county Inspector General Sheryl Steckler issued a report suggesting the city seek competitive bids for trash hauling.

Steckler said that another renewal would be against state policy and may violate city guidelines that call for seeking better deals through competition. She added that Delray Beach residents may be paying less for trash service if the city had sought competitive bids rather than regularly renewing its garbage-collection contract with Waste Management.

But the city approved the renewal anyway.

Residents, meanwhile, say that regardless of Waste Management's service, the city has an obligation to find out if it could get a better price from other companies.

The last time the city renewed the garbage contract was in 2008, when rates went up by more than 50 percent.

More than 40 people clapped at the decision to seek outside counsel during Tuesday's meeting, which is rarely attended my more than a couple residents.

Also at the meeting, the city moved forward with bidding out the contract with the vendor who provides lounge chairs and beach cabanas. In April, the commission voted to possibly terminate the contract, which was renewed by former City Manager David Harden without bidding.

"Having put this out to bid could have gotten us more money," Jacquet said. "I believe that a city employee renewing the contract without seeing how much we could have made is causing us a lot of headaches."